A Company Makes a Device That Can Be Fitted to Automobile

question 75

Essay

A company makes a device that can be fitted to automobile engines to improve the mileage.The company claims that if the device is installed,owners will observe a mean increase of more than 3.0 mpg.Assuming that the population standard deviation of increase is known to be 0.75 mpg,and a sample of size 64 cars is selected with an = 3.25 mpg,use the p-value approach to test the null hypothesis using a significance level of 0.05.

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Definitions:

Accounting

A systematic process of recording, summarizing, and reporting the financial transactions of a business.

Cash Flow

The net amount of cash and cash-equivalents being transferred in and out of a business, crucial for its liquidity, solvency, and financial flexibility.

Language Of Finance

The specific jargon, terms, and concepts used in the finance industry to communicate financial information and decisions.

Proprietor Form

A business structure owned by a single individual, where the owner and the business are legally the same entity.